Example

In the Infinite Banking System, most people will purchase a new car or pay off an existing car loan. This example considers the purchase of a $40,000 car using four methods of payments—three traditional methods and the Infinite Banking Concept.

The main source for comparison will be the total cost.
THE ASSUMPTIONS FOR THE ILLUSTRATION

  1. 44-year time period with a new car every 4 years.
  2. Traditional bank financial and IBC financing will be at 8%.
  3. 5% rate of return.
  4. Residual value on leases will be 35% of actual value.
  5. Residual value will allow the same amount financed ($40,000) each time with traditional bank financial and IBC.
  6. Your annual payment, bank financing, and IBC System equals $12,077.